Warning: unlink(/var/www/html/handbook/application_code/app_web/2019/cache/kohana_configuration): No such file or directory in /var/www/html/handbook/system/core/Kohana.php on line 634
Mathematics of Finance - ACST202 - 2019 Course Handbook - Macquarie University

Skip to Content

Mathematics of Finance - ACST202

This unit provides a rigorous mathematical development of compound interest theory, using calculus where appropriate, applying the theory to problems more complex than those encountered in ACST101. Topics include the force of interest and its relationship to interest rates, inflation and capital gains tax, discrete and continuous term certain annuities, project appraisal, loans, bonds, yield curves, matching and immunisation, pricing by the 'no arbitrage' assumption, and forward rate agreements. Students are assumed to be able to use the basic functionality of a spreadsheet package of their choice. The concepts developed in this unit are required in several subsequent units in the actuarial degree. Students gaining a grade of credit or higher in this unit are eligible for exemption from subject CT1 of the professional exams of The Institute of Actuaries of Australia.

Credit Points: 3
When Offered:

S1 Day - Session 1, North Ryde, Day

Staff Contact(s): Actuarial staff
Prerequisites:

(ACST101(Cr) or WACT101(Cr) or ACST152) and MATH133 and GPA of 4.50 (out of 7.0) Prerequisite Information

Corequisites:

NCCW(s): ACST200, ACST201
Unit Designation(s):

Commerce

Science

Unit Type:
Assessed As: Graded
Offered By:

Department of Actuarial Studies and Business Analytics

Faculty of Business and Economics

Course structures, including unit offerings, are subject to change.
Need help? Ask us.